1 Answer
1

As you suspected, these are actually other players playing the game. These are similar to the ghosts you sometimes see running around, although more vivid. According to the Dark Souls wiki:

Near bonfires (and only near them), the phantoms of other players are
more distinct and visible than elsewhere in the game. Seeing other
people resting at the same bonfire helps players realize that these
people are probably facing the same challenges.

Thanks for the link! I suspect the next paragraph is also relevant: "If someone strengthens a bonfire, this will be transmitted to people "nearby" (in network terms) who are using the same bonfire, giving them an extra Estus Flask. Strengthening a bonfire costs valuable Humanity, but you can use it to help out strangers and gain a sense of solidarity with your fellow strugglers."
–
YellowMegaManOct 16 '11 at 9:05

2

@YellowMegaMan that would explain why I am given an extra estus flask every so often for no apparent reason
–
WipqoznOct 16 '11 at 22:43